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Economic hardship and termination of employment

A recent judgment of the Québec Court of Appeal (CMP Advanced Mechanical Solutions Ltd. v. Snow, 2012 QCCA 1692), reiterated that even if an employer is going through unexpected economic hardship and must terminate an employee, the employer must still give him notice under Article 2091 of the Civil Code of Québec (“C.C.Q.”) which has to be of a reasonable length considering, among other factors, the length of the relationship, the nature of the work, the age of the employee and his level of education and skills.

For the Court of Appeal, it is clear from the jurisprudence and doctrine that the financial situation of an employer does not constitute a serious reason to unilaterally terminate a contract of employment without prior notice under Article 2094 C.C.Q.